Hay Company had January 1 inventory of $300,000 when it adopted dollar-value LIFO. During the year, purchases were $1,800,000 and sales were $3,000,000. December 31 inventory at year-end prices was $379,500, and the price index was 110.
What is Hay Company’s gross profit? please show work
a. 1,279,500
b. 1,245,000
c. 2,650,500
d. 1,249,500